Asian markets turn negative as early rally fades after Huang downfall

Asian markets turned negative on November 13 as the initial rally faded after the downfall of Nvidia mastermind Jensen Huang. Traders were spooked by the resignation of the pivotal figure in the artificial intelligence explosion, who had been involved in extramarital affairs and faced a boardroom revolt. Huang's departure has seen Nvidia's share price fall about a fifth since news of the first affair broke last month and ended around four percent down.

While business would continue as usual, the crisis raised concerns about the AI boom, which had been stuttering due to profitability questions. Meanwhile, investors kept tabs on the Middle East crisis after Donald Trump urged Vice President JD Vance to focus on domestic issues instead of negotiations with Tehran. The crisis affected chip titan Nvidia, but competitors Broadcom and Advanced Micro Devices rallied in New York.

The crisis had also raised concerns about national security and the protection of sensitive US technology, prompting a request for Huang and Commerce Secretary Howard Lutnick to testify before the Senate Banking Committee. Asia's markets enjoyed a more positive start, but anxiety over the crisis set in as the weekend approached.

Losses were seen in various markets, including Hong Kong, Shanghai, Sydney, Singapore, Wellington, Manila, and Mumbai, while Bangkok and Jakarta rose. London, Paris, and Frankfurt opened lower. Traders were also preparing for Anthropic's market debut, which is seen as a gauge of the AI boom's longevity amid concerns about spending on data centers and software and possible regulation.